NEW ZEALAND – Multinational dairy cooperative Fonterra and Dutch nutrition company DSM have extended their collaboration into the non-dairy sector in what they describe as a “complementary nutrition partnership.”

The new form of collaboration involves a new business venture between the two companies that seeks to commercialize fermentation-derived proteins with dairy-like properties.

The startup is a result of a long collaboration between DSM and Fonterra that started in 2019, to build a comprehensive understanding of how to use precision fermentation science and technology to produce proteins similar to those found in dairy.

Since then, the partners have diversified into reducing on-farm greenhouse gas emissions by exploring applications for DSM’s methane-inhibiting Bovaer technology in the New Zealand pasture-based farming system.

The start-up, yet to have a name but will be determined ahead of incorporation, will enable the acceleration of commercial product solutions utilizing this intellectual property while continuing to focus further on precision fermentation research and development.

Komal Mistry-Mehta, chief innovation and brand officer at Fonterra said: “The new start-up is an exciting opportunity to combine DSM’s world-leading expertise in precision fermentation science and technology with Fonterra’s world-leading dairy science and technology.”

With fermentation-produced proteins having a wide array of potential applications for customers and consumers, this partnership aligns well with the co-op’s strategy to be a leader in dairy innovation and science.”

The food technology innovation, Precision fermentation harnesses microorganisms to produce ingredients with similar properties to those found in dairy, under specific conditions in bioreactors for large-scale production of dairy products, proteins, etc.

The increasing investments in this technology are driving the growth of the market that is significantly seeing new entrants.

Many startups are entering this process because it offers a better way of forming many complex organic compounds without incorporating animals.

No dependency on weather is also a major factor behind the significant growth of the precision fermentation market.

With this trend taking shape, TechSci Research projects the global Precision Fermentation Market valued at US$293.75 Million in 2021 to grow at a CAGR of 38.73%, during the forecast period 2017-2027.

ADM has also partnered with Asia Sustainable Foods Platform in a joint venture company, ScaleUp Bio , in Singapore.

The venture firm will operate a new pilot laboratory for start-ups engaging in precision fermentation for food applications, helping them to propel innovation rapidly.

The technology is now also being used by infant formula manufacturers like Helaina which has been carrying out research on delivering the first humanized infant formula, containing human proteins that functionally perform in the same manner as breast milk.

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro-industry. SUBSCRIBE HERE.